Technical analysis for USDJPY on 30.08.13

The USD/JPY has returned to the ascending channel and is expected to move up.

Direction

Period

Expected price dynamics

Price movement corridor

↑↓

1 day

≈130 pips

Max. 100.00

Min. 96.00

The fundamental data on the USD came out positive, which resulted in the greenback’s rise against a basket of currencies, like EUR, CAD, CHF, and JPY. However, the resistance level of 98.40 didn’t let the greenback continue its rise against the Japanese yen. The pair started its consolidation. We can expect a short-term pullback down to the support level; then the price is expected to retest the resistance level. Should the price break this level, it will be expected to continue the uptrend to the weekly trend line at 98.70. Crossing the trend line would open the way to the resistance level of 99.00 – 99.15.

Alternative forecast

Alternatively, the price may rebounds from the current resistance level of 98.40 or move to the weekly trend line at 98.70. In both cases, the rebound should go amid breaking the resistance level of 98.00 – 98.10, which would open the way to the support level of 97.60. Breaking down the level of 97.60 will give possibility for selling short at the support level of 97.00.

About Author

Hello, my name is Artem. If you ask me “Why have you chosen Forex?”, I would quote a legendary bestseller “Trading for a Living” written by Alexander Elder – the greatest trader of all time: “You can be free. Live and work in any corner of the globe. You can set aside everyday troubles and be free from all bosses. This is the life of a successful trader”(a small step aside.) Now I will tell you a few words about myself: I have a two-year experience of Forex trading. I also have a trading certificate confirming that I have passed a course called “Theory and practice of international financial markets” held by a private consulting company. Currently, I’m trading in a foreign exchange market and reading books written by successful world traders. I believe only in technical analysis, as it is based on crowd psychology, while the crowd behavior is primitive.